The following selected transactions were completed by Silverado Delivery Service during February: 1. Received cash from owner as additional investment, $25,000.

The following selected transactions were completed by Silverado Delivery Service during February:
 1. Received cash from owner as additional investment, $25,000.
 2. Purchased supplies for cash, $750.
 3. Paid rent for February, $3,000.
 4. Paid advertising expense, $1,500.
 5. Received cash for providing delivery services, $16,800.
 6. Billed customers for delivery services on account, $32,500.
 7. Paid creditors on account, $1,400.
 8. Received cash from customers on account, $23,770.
 9. Determined that the cost of supplies on hand was $275 and $475 of supplies had been used during the month.
 10. Paid cash to owner for personal use, $5,000.

Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (10), in a column and inserting at the right of each number the appropriate letter from the following list:

a. Increase in an asset, decrease in another asset.
b. Increase in an asset, increase in a liability.
c. Increase in an asset, increase in owner’s equity.
d. Decrease in an asset, decrease in a liability.
e. Decrease in an asset, decrease in owner’s equity.

Answers:
1. c
2. a
3. e
4. e
5. c
6. c
7. d
8. a
9. e
10. e